Chavez, Uribe to meet in tense time--Pipeline, trade issues among topics at talks

CNN Wednesday, April 23, 2003 Posted: 7:43 AM EDT (1143 GMT)

CARACAS, Venezuela (AP) -- Venezuela's president said he will sign an agreement with Colombia to build a gas pipeline connecting the two nations, part of efforts to reinforce ties at a time of tense bilateral relations.

President Hugo Chavez is to meet with Colombian President Alvaro Uribe on Wednesday in the southeastern Venezuelan city of Puerto Ordaz, located 310 miles from Caracas.

Chavez said Tuesday that he's committed to improving relations with Colombia despite allegations by authorities from the neighboring country that Venezuela has sheltered Colombian rebels.

"We sent our affection and our best intention to continue improving relations with the sister republic of Colombia," said Chavez.

The two leaders will also discuss trade issues sign an agreement in which Venezuela would supply border towns in rural Colombia with electricity.

Trade between the two nations topped $2 billion over the last two years but has suffered severely since January 22, when Venezuela halted foreign currency purchases to protect foreign reserves and guard against a slide in the bolivar.

Colombian businesses haven't been able to collect an estimated $350 million in debts from Venezuelan importers due to delays in establishing a new foreign exchange system.

According to the Colombian Venezuelan Chamber of Commerce and Integration, bilateral trade could fall by as much as 60 percent this year if such problems persist.

Border security will also be discussed at the meeting, which follows several weeks of tensions fueled by allegations in Colombia that Venezuela has provided a safe haven for Colombian rebel groups.

Chavez denies his government has ever aided Colombia's leftist insurgent groups, and he said groups in both countries are trying ruin the two neighbors' relationship. He expressed optimism the meeting would be a success despite efforts by his adversaries aimed at "sabotaging" it.

The presidential summit will be the second that Chavez and Uribe have held in less than six months. The last meeting took place on November 14 in Colombia's coastal city of Santa Marta.